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The pair declined heavily amidst the increased volatility that spilled over from the equity markets.
NZDCHF is currently on a corrective retrace higher and the question is, how far can this correction run?
The daily chart above carries the simplest visual display of a few highly important support and resistance levels we need to look out for.
Let’s start with the current price action zone. The pair is coming to an initial resistance patch (dotted red trendline) roughly to the 0.5800 handle. This area has been tough to break in the past few trading sessions. Therefore, a break or a failure would determine the next course of short-term play.
Simply by looking at the formation of the higher lows from the past week’s price action, we can expect that the probability of a break higher is greater compared to a fall-back. This potentially signals the end of the correction.
However, we prefer to see a validated break above the resistance to expect further upside momentum. Otherwise,...
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